Philipp Kusche, Chairman of HCMA Europe and Global Co-Head of ILS at Howden Capital Markets and Advisory, discussed the evolving role of insurance-linked securities (ILS) in the (re)insurance industry during an interview with The Insurer at the Monte Carlo RVS event.
Kusche highlighted the transformation of ILS from a specialized product to an essential part of risk management for insurers and reinsurers. "ILS has evolved from a niche innovation to a cornerstone of the (re)insurance industry, mobilizing capital, pricing emerging risk, and building resilience in an era of systemic volatility," said Kusche.
He noted that despite ongoing market volatility and changes in market conditions, capital market instruments such as ILS continue to provide strong risk-adjusted returns. Kusche also emphasized that for investors, these instruments offer significant benefits due to their uncorrelated nature with other asset classes. For the insurance sector itself, ILS contributes to greater systemic resilience.
The full discussion is available through The Insurer.